*ISLAMABAD – Prime Minister Imran Khan approved increase in gas prices upto 46 per cent as proposed by the Oil and Gas Regulatory Authority (Ogra).*
The premier made the decision during a briefing on gas sector. Mr. Khanalso ordered steps to control annual gas theft of Rs50 billion.
After the PM approval, the summary for the gas prices increase will bepresented to the next meeting of the Economic Coordination Committee (ECC)of the Cabinet. During the briefing, the PM was informed that there is noother way except the price increase to bridge the revenue gap of the SuiNorthern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC).
A senior official at the meeting said “There is no other way out,” whenasked if the prime minister was convinced about the gas price increase whenhe had been talking about reducing the burden on common people.
Under the new gas tariff hike, once implemented, it comes with 186per centincrease in gas rates for poorest categories of domestic and commercialconsumers, while the prescribed rates for other categories – industrial,cement, CNG, power and commercial – have been increased by 27 to 31 percent for the two companies.
Ogra says SSGC, that serves Sindh and Balochistan, will need Rs167 billionduring the next financial year to fund its programmes. Therefore, it hasapproved 45.54pc (Rs184.34 per unit) increase in the average prescribedprice from its existing rate of Rs404.75 to Rs589.09 per unit.